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Rubber vs specialty grades
What it is
Rubber-grade carbon black is the reinforcing filler in tyres and rubber goods and accounts for most volume; specialty grades go into plastics, coatings, inks, batteries and conductive applications at far higher purity and price
Specialty requires different plant configuration and customer qualification
Impact on industries
- Specialty realisation is a multiple of rubber grade, and demand is tied to plastics, electronics and coatings rather than to the tyre cycle
- Diversifies away from a customer base dominated by a handful of tyre makers with strong negotiating power
- Volumes are small relative to rubber grade, so it lifts blended margin more than revenue
- Requires purification, process control and long qualification with specialty customers, so the shift is slow and capability-gated